chapter 4 - chapter-4.pdfbescom has informed that, it has already mandated all ht consumers to pay...

Karnataka Electricity Regulatory Commission Tariff Order 2018 HUKERI

RECS

Chapter – 4 : Determination of Tariff for FY19 Page 54

CHAPTER – 4

DETERMINATION OF RETAIL SUPPLY TARIFF FOR FY19

4.0 Revision of Retail Supply Tariff for FY19-HUKERI RECS’s Proposals and

Commission’s Decisions:

4.1 Tariff Application

As per the Tariff application filed by the HRECS, it has projected an unmet gap in

revenue of Rs.2316.80 Lakhs for FY19, which also includes the gap in revenue of

Rs.3204.79 Lakhs for FY17. In order to bridge this gap in revenue, HRECS has

proposed a uniform tariff increase of 73 paise per unit, in respect of all the

categories of consumers.

In the previous chapters of this order, the Annual Performance Review(APR) for

FY17 and the revision of ARR for FY19 has been discussed. The various aspects of

determination of tariff for FY19 are discussed in this Chapter.

4.2 Statutory Provisions guiding determination of Tariff

As per Section 61 of the Electricity Act, 2003, the Commission is guided inter-alia,

by the National Electricity Policy, the Tariff Policy and the following factors, while,

determining the tariff so that,

the distribution and supply of electricity are conducted on commercial basis;

competition, efficiency, economical use of resources, good performance,

and optimum investment are encouraged;

the tariff progressively reflects the cost of supply of electricity, and also

reduces and eliminates cross subsidies within the period to be specified by the

Commission;

efficiency in performance is to be rewarded: and

a multi-year tariff framework is adopted.


RECS


Section 62(5) of the Electricity Act, 2003, read with Section 27(1) of the Karnataka

Electricity Reform Act, 1999, empowers the Commission to specify, from time to

time, the methodologies and the procedure to be observed by the licensees in

calculating the Expected Revenue from Charges (ERC). The Commission

determines the Tariff in accordance with the Regulations and the Orders issued by

the Commission from time to time.

4.3 Factors Considered for Tariff setting:

The Commission has considered the following relevant factors for determination

of retail supply tariff:

a) Tariff Philosophy:

As discussed in the earlier tariff orders, the Commission continues to fix tariff

below the average cost of supply in respect of consumers whose ability to

pay is considered inadequate and also fix tariff at or above the average cost

of supply for categories of consumers whose ability to pay is considered to be

higher. Thus, the system of cross subsidy continues. However, the Commission

has taken due care to progressively bring down the cross subsidy levels as

envisaged in the Tariff Policy 2016, issued by the Government of India.

b) Average Cost of Supply:

The Commission has been determining the retail supply tariff on the basis of

the average cost of supply. The KERC (Tariff) Regulations, 2000, as amended

from time to time, require the licensees to provide the details of embedded

cost of electricity voltage / consumer category-wise. The distribution network

of Karnataka is such that, it is difficult to segregate the common cost

between voltage levels. Therefore, the Commission has decided to continue

the average cost of supply approach for recovery of the ARR. With regard to

the indication of voltage- wise cross subsidy with reference to the voltage-

wise cost of supply, the same is indicated in the Annexure to this Order.


RECS


c) Differential Tariff:

The Commission has been determining differential retail supply tariff for

consumers in urban and rural areas, beginning with its Tariff Order, dated 25th

November, 2009. The Commission decides to continue the same in the

present order also.

4.4 New Tariff Proposals:

(i) Increase in Billing demand for HT category:

The other ESCOMs, in their applications have submitted that, presently the billing

demand during unrestricted period should be the maximum demand recorded

during the month or 75% of the CD, whichever is higher. However, in the States

like Andhra Pradesh, Telangana, Maharashtra and Gujarat, the minimum billing

demand for the HT consumers is more than 75% of the CD. The ESCOMs in their

proposals have requested to increase the minimum billing demand to 85% of the

Contract Demand or Maximum Demand Recorded whichever is higher.

Commission’s Analysis and decision:

The Commission has examined the proposal and notes that the recovery of the

Fixed Charges from HT consumers at 75% of the CD or the actual maximum

demand recorded, whichever is higher has been in vogue for quite some time

and the same needs to be revised considering the present circumstances. In

view of the current level of competition in the energy market, there is a need to

provide a level playing field to all the stakeholders.

Further, the Commission notes that, the existing billing of demand charges at

maximum demand recorded or 75% of contract demand whichever is higher

has been in vogue by considering the shortage situation in power supply wherein

both energy cut and demand cut were imposed to meet the shortage situation.

In addition to this, both reliability and quality of power supply to HT consumers


RECS


were also reckoned while fixing the minimum billing demand of 75% of contract

demand.

The Commission takes note of the present uninterrupted system of power supply

without imposition of energy /demand cut and the reliability and quality of

power supply to the HT consumers. The Commission further notes that the fixed

expenditure incurred by the Distribution licensees is being recovered only to an

extent of 28.56%. Thus, the Commission is of the view that there is a need to

increase the recovery of fixed expenditure through a revised criterion for billing

demand of the HT consumers.

Hence, the Commission decides to increase the minimum billing demand from

the current level of 75% of the contract demand to 85% of the contract demand.

The revised demand charges are indicated in the respective HT tariff schedules.

(ii) Approval for allowing the expenditure incurred on promotion of payments

through Cards and Digital Means.

BESCOM in its application has submitted that, in the letter dated 07.11.2016

received from the Under Secretary(IT), Ministry of Power, New Delhi, where in it

was communicated the decision of the meeting held under the Chairmanship of

Secretary (DIPAM), to the effect that the Ministry of Power will persuade

States/DISCOMs to absorb MDR/Convenience fee on digital payment, as the

same stands factored in the tariff structure.

BESCOM in its application has submitted that, presently, the transaction charges

paid by BESCOM for the payments received through Bangalore One/ Karnataka

One / Mobile One and Post office is accounted as “Other Finance Cost” and the

same is being allowed in the tariff. However, the charges for card payment

made through other digital mode as made out below is borne by the consumer.


RECS

Chapter – 4 : Determination of Tariff for FY19 8

a) E-payment through Debit card, Credit card and Net Banking through BESCOM

website, bank website, Bangalore-one website.

b) ECS/NACH.

c) Mobile-apps (Mobile One, Paytm, Pay U).

d) NEFT & RTGS for HT Consumers.

e) Card swiping machines (Point of Sale machines). Provision for the same has

also been made in the ATP counters and action has been taken for its live

operations.

BESCOM has furnished details of the charges for payments made through these

modes by the HT Consumers depend on the amount paid at the bank’s slab rates

and the charges vary from bank to bank which are borne by the consumers.

In addition to this, if HT consumers are holding current accounts and if payments are

made through Cards as per the limit fixed by the Banks based on their transactions

and credit limit, then the transaction charges also need to be borne by BESCOM.

BESCOM has furnished the charges levied by various financial institution for making

payment of energy bills. Further, the BESCOM has submitted that, in respect of

charges to be absorbed in the case of digital online payments irrespective of the

amount of payment.

BESCOM has submitted that, if the HT consumers opt for RTGS/NEFT, Debit/Credit card

payment modes other than on-Line payment through BESCOM website, transaction

charges are more and needs to be borne by the Company and in turn it will have to

be passed on to all the consumers through tariff as per GoI initiative. Further, the

BESCOM has informed that, it has already mandated all HT consumers to pay

through online and requested the Commission to approve the On-line Payment

through BESCOM website or Electronic Bill Payment by selecting Net-Banking mode

wherein the applicable transaction charges per transaction is Rs. 5/- only.

Further, BESCOM has submitted that, in respect of the consumer paying through

Bangalore One, Karnataka One and IMI (Mobile Governance) by Digital mode, as


RECS


transaction charges are already being borne by BESCOM and if the MDR fees for

these said transactions is also borne by BESCOM, it will be an additional burden.

Apart from this, for the payment made through BBPS, the charges levied by the NPCI,

to be paid to BBPOU for ON-US and OF-US transaction are also required to be borne

by BESCOM.

BESCOM has requested the Commission to examine the matter and permit it to bear

the expenditure in this regard as per the directions of MOP, GoI and pass suitable

orders in this matter.

Commission’s analysis and decision:

The Commission has examined the proposal. In the long-run, all the payments

towards the energy charges in ESCOMs shall, as far as possible, be through the digital

mode in line with the directions issued by the MoP, GoI. This would avoid the hassles

of handling and accounting of physical cash. Hence in order to encourage the

consumers to opt for digital payments, the Commission decides to allow the ESCOMs

to accept the payment of power supply bills from the consumer by digital mode in

line with the directives issued by the MOP, GOI and allow it to incur the expenses

towards digital payments in the ARR (other than bank charges levied by the banker

to the consumer on payment directly by NEFT / RTGS). However, the Commission

after having noticed the higher transaction charges on the bill payment of bills

through debit/credit cards, decides to allow Distribution licensees to incur the

expenditure on payments through Debit/ Credit card, of power supply bills having

demand up to Rs.2000 only.

Further, the Commission directs the all the Distribution licensees to minimise the

expenditure to be incurred in this respect by encouraging the consumers to make

payments through other e-payment /digital mode charged with lower rate of

transaction charges.


RECS


(iii) Special Incentive Scheme to HT/EHT Industrial Consumers

As part of its efforts to bring back HT Consumers to its grid, the Distribution licensees

proposed to introduce an Incentive Scheme for HT Consumers in line with a similar

Scheme implemented in the year 2003 wherein the consumption over and above

the average consumption for the preceding year was billed at the rate of first slab

i.e., Rs.3.80.

This proposed incentive scheme is intended to generate additional revenue from HT

consumers (HT2-a i, ii & HT2-b I(i)(ii) and HT2c(ii) consumers) by encouraging them to

consume energy over and above the past 12 months’ average consumption by

offering a concessional tariff rate.

a. The salient features and procedural aspects of the scheme are as follows:

i. The scheme is applicable to all HT 2(a) (except railway traction, effluent

treatment plants and BMRCL), HT2 (b) and HT2(c)(ii) consumers in HRECS.

The benefit of the scheme will be extended to all eligible consumers

(exceeding the 1st slab in their respective tariff) upon their request.

ii. The rate applicable for eligible consumption under the scheme is less than

the second slab rate/kwh excluding tax as shown in the above table. The

normal consumption will be billed at the prevailing tariff rate applicable to

the respective category of consumers.

iii. Eligibility: The consumption over and above the base consumption fixed

for a month is eligible for incentive under the scheme. The base period is

defined as the past 12 month’s consumption. The base consumption will

be the average of monthly-billed energy supplied by HRECS during the

base period. Energy consumed under special scheme, if any, during the

base period will not be accounted for arriving at base consumption.


RECS


iv. The base consumption will be computed on the average of 12 months'

consumption excluding wheeled energy for the period from January, 2016

to December, 2016.

v. After opting for this scheme, if the consumers avail increased CD on a

permanent basis, the base consumption will be increased by 100 units per

KVA of the additional CD availed by the industry on permanent basis.

vi. For new industries serviced after January 2017, the criteria for these

industries to be eligible for this special scheme will be a minimum period of

six months.

vii. For new industries, which do not have 12 months' base consumption, the

base consumption will be computed on the actual consumption for the

months in the base period plus the consumption computed at 100 per

KVA per month for the remaining months of the base period.

viii. Distribution licensees will have flexibility in fixing base consumption.

ix. In order to avail the special scheme, 20% increase in contract demand will

be allowed to the availing consumers during the currency of the scheme

which is optional to the consumers. Penalty for exceeding the maximum

demand, by the consumers availing the scheme thus would be for the

contract demand(CD) exceeding 120% of the sanctioned CD. The

minimum billing demand will also be enhanced accordingly.

x. The scheme will continue till the end of the financial year. However,

Distribution licensees would endeavour to continue the scheme with the

approval of the Commission, for the ensuing year as well, with necessary

modifications to the rate structure based on the tariff rates approved by

KERC for the ensuing year.


RECS


xi. Consumer under the HT incentive scheme can avail any other incentives

in force.

Commission’s Analysis and Decision:

The Commission notes that many HT/EHT consumers are opting for open access

and are procuring power from sources other than the distribution licensees and

as a result, distribution licensees are deprived of the sales to the paying

consumers, impacting the finances of distribution licensees. The Commission is of

the view that significant number of such consumers can be weaned back by the

ESCOMs if attractive incentives are provided in the Tariff as in proposals made by

the ESCOMs. Such scheme would also encourage HT/EHT consumers to consume

power over and above their average consumption. The Commission also

considered that consumption by such consumers should be incentivized during

off peak hours and night hours.

Further, the industrial consumers participating in the Public Hearings held by the

Commission on the tariff petitions of the distribution licensees, have sought for

reduction in their tariff that is competitive with the open market rates and stated

that, if done so, they would avail power from the distribution licensees instead of

sourcing their requirement from open access.

Therefore, in this context, the Commission approves an incentive scheme to

HT/EHT consumers except Bengaluru Metro Rail Corporation Limited (BMRCL)

considering the proposal made by the ESCOMs with an effort to bring back

HT/EHT consumers who are availing power through open access.

The Commission, therefore hereby extends the following special consumers, in an

attempt to bring back HT / EHT consumers who are availing power through open

access.


RECS


Further, the Commission, considering that concessional tariff being extended to

the BMRCL and Railway traction, decides not to extend such special incentive

scheme and also ToD tariff to the installations of Bangalore Metro Rail Corporation

(BMRCL) and Railway traction.

The terms and conditions of the special incentive scheme are as under:

i. Eligibility:

a) The scheme is applicable to all HT (1), HT 2(a), H 2(b) and H2 (c) including sub-

categories in these tariff schedules and provided with ToD meters in the State,

at their options.

b) The quantum of energy consumed during non-peak day hours between 10.00

Hours and 18.00 Hours during the month over and above the average base

consumption corresponding to this time period is eligible under this incentive

scheme.

ii. Base consumption:

The monthly average consumption out of energy supplied by Hukeri RECS

during the non-peak hours’ period between 10.00 Hours and 18.00 Hours of the

day, during the period from 01-04-2017 to 31-03-2018 as recorded in Time of

Day (ToD) meter shall be reckoned as base consumption.

Note: Consumption of energy from sources other than Hukeri RECS shall not be

reckoned for computation of base consumption.

a. Computation of base consumption for existing consumers:

The base consumption of consumers existing as on 01.04.2017 shall be

determined based on their consumption between 10.00 Hours and 18.00 Hours

for the period from 01-04-2017 to 31-03-2018, irrespective of the date of request

by the consumer for opting for the Scheme.


RECS


b. Computation of base consumption for new consumers:

(i) In the case of consumers who have obtained the services after 01.04.2017

where the consumption for the past 12 months is not available, then the

available consumption subject to availability of a minimum of 6 month’s

consumption, shall form the basis for computing the base consumption.

If the actual consumption for a minimum of 6 months is not available, the

base consumption shall be worked out by considering 67 kWh per month

per kVA of contract demand for the installations. After 6 months, the base

consumption shall be reassessed on the basis of actual consumption

recorded between 10.00 Hours and 18.00 Hours for the 6 months from the

date of service.

(ii) In the case of new consumers availing the service during FY19, the base

consumption shall be worked out by considering 67 kWh per month per

KVA of contract demand for the first 6 months of service. After 6 months,

the base consumption shall be reassessed on the basis of actual

consumption recorded between 10.00 Hours and 18.00 Hours for the 6

months from the date of service.

Also, in the case of an existing consumer having CD below 500kVA and not

opted ToD tariff and willing to opt this special incentive scheme, then such

consumer should opt for ToD regime. The base consumption for such

consumers shall be worked out by considering 67 kWh per month per KVA

of contract demand for the first 6 months. After 6 months, the base

consumption shall be reassessed on the basis of actual consumption

recorded in the ToD meter between 10.00 Hours and 18.00 Hours for the 6

months from the date of fixing of ToD meter by opting this scheme.

(iii) In the case of eligible consumers who have increased their contract

demand on a permanent basis, during the currency of the scheme, the


RECS


existing base consumption shall be increased to the extent of additional

contract demand at the rate of 67 kWh/KVA per month, from the month in

which the additional contract demand has come into effect.

iii. Incentive:

Any energy consumed by the eligible consumers during the non-peak period

between 10.00 Hours and 18.00 Hours, over and above the average base

consumption as arrived at, shall be allowed a discount of Rs.1.00/- per unit in the

bill, to the eligible consumers.

Further, the eligible consumers would be allowed a discount of Rs.2.00 per unit in

the bill for the energy consumed during the period between 22.00 Hours and 06.00

Hours as against the normal ToD rebate of Re.1.00 per unit.

Note: The base consumption is not applicable for this additional discount for the

consumption during 22.00 Hours and 06.00 Hours. Further, the existing ToD benefit of

[ (-) one Rupee per unit] is not applicable to the consumers covered under this

scheme for usage during 22.00 Hours and 06.00 Hours. However, the ToD

tariff/penalty of (+) one Rupee per unit, is applicable for the energy consumed

during the peak periods between 06.00 Hrs. to 10.00 Hrs. and 18.00 Hours to 22.00

Hrs. For all other consumers who have not opted for this scheme, the approved ToD

tariff will apply as per the Tariff Order.

iv. Additional Security deposit:

No additional security deposit shall be collected for the additional units

consumed over and above the base consumption between 10.00 Hours and

18.00 Hours under this “incentive scheme”

v. Currency of this incentive scheme:

Further, to provide certainty to the Scheme, the Commission decides that, the

Scheme will remain in force initially for two years, subject to revision of the


RECS


incentive amount annually. However, the HRECSs may approach the

Commission for review of the Orders during this period. The consumer, under this

scheme can exit from the scheme by issuing a notice of at least 2 months

before, opting to exit from this scheme.

(iv) Simplification of tariff:

The other ESCOMs have submitted that a Committee was constituted by the

GoK vide Government Order No. EN70 PSR 2017, dated 04.09.2017, to study the

tariff simplification across the ESCOMs and also informed about the receipt of

proposal on the rationalisation of tariff structures made out by the Commission.

The ESCOMs have submitted the Committee report for simplification of Tariff

Structure for the consideration of the Commission.

Commission’s Analysis and decision:

Before the referred Committee was set up by the GoK, for simplification of Tariff

structure, the Commission had proposed certain simplification of tariff structure

and the suggestions of the ESCOMs were sought. But none of the ESCOMs have

furnished their views. However, some of the recommendations of the Committee

are in line with the suggestions made by the Commission.

Simplification of tariff structure is aimed at reducing the number of

subcategories. It need not necessarily involve converting the existing category to

some other category by charging a higher tariff. This exercise is basically

considered for restructuring the existing subcategories without converting the

existing domestic / other categories in to commercial categories.

To enable the Commission to examine the proposal, HRECS should have

furnished necessary details such as existing and projected number of consumers

under the proposed categories, sanctioned/ contract demand, Sales and the

revenue at the existing tariff and the proposed tariff etc. Without furnishing the


RECS


above details along with the proposed tariff, the estimation of revenue to meet

the ARR would not be proper.

Hence, the Commission is of the view that, while submitting any proposal for tariff

simplification recategorisation for approval of the Commission in the next filing,

all the ESCOMs shall furnish the above necessary details, without which it would

not be possible for the Commission to examine their requests.

(v) Tariff for Electric Vehicle Charging Stations:

BESCOM has submitted that, the Government of India and NITI Aayog are

working on a policy for promotion of e-vehicles to encourage and promote e-

mobility in the future. That charging stations are required for mass adoption of

electric vehicles, and that to encourage electric and hybrid vehicles, various

Companies are coming forward. As per the prevailing tariff structure approved

by the Commission, battery charging units are being billed under commercial

tariff.

In line with Karnataka State Electric Vehicle & Energy Storage Policy 2017,

BESCOM has requested the Commission to approve a separate tariff under both

HT and LT category with Time of Day tariff for Electric Vehicle Charging Stations.

Commission’s Views and Decisions:

The Commission takes note of the Karnataka State Electric Vehicle & Energy

Storage Policy, 2017 and the request made by the BESCOM to approve a

separate tariff under both HT and LT category for the Electric vehicle charging

stations to encourage and promote e- mobility in the future by use of electric

and hybrid vehicles in the State. The Commission, taking note of the benefit of

such incentive to the environment as well as to the society in the State of

Karnataka, decides to introduce a separate category of tariff for HT and LT

vehicle charging stations under LT6 tariff schedule with concessional rates to be

http://www.investkarnataka.co.in/assets/downloads/Karnataka-State-Electric-Vehicle-&-Energy-Storage-Policy-2017.pdf




RECS


adopted in all the ESCOMs in the State. The rates approved to this category to all

the ESCOMs is indicated in the Tariff Schedule in the subsequent section of this

chapter.

4.5 Revenue at existing tariff and deficit for FY19:

The Commission in its preceding Chapters has decided to carry forward the gap

in revenue of Rs.2560.68 Lakhs of FY17 to the ARR of FY19. The gap in revenue for

FY19 is proposed to be filled up by revision of Retail Supply Tariff, as discussed in

the following paragraphs of this Chapter.

Considering the approved ARR for FY19 and the revenue as per the existing tariff,

the gap in revenue for FY19 is as follows:

TABLE – 4.1

Revenue Deficit for FY19

Rs. in Lakhs

Particulars Amount

Approved Net ARR for FY19 including gap of FY17 17678.60

Revenue at existing tariff 16751.10

(- )Deficit 927.50

Additional Revenue to be realised by Revision of Tariff 927.50

Accordingly, in this Chapter, the Commission has proceeded to determine the

Revised Retail Supply Tariff for FY19. The category-wise tariff as existing, as

proposed by HUKERI RECS and as approved by the Commission are as follows:

1. LT-1 Bhagya Jyothi:

The existing tariff and the tariff proposed by HUKERI RECS are given below:

Sl.No Details Existing as per 2017

Tariff Order

Proposed by HUKERI RECS

1 Energy charges

(including recovery

towards service main

charges)

592 Paise / Unit Subject

to a monthly minimum of

Rs.30 per installation per

month.

668 Paise / Unit Subject to

a monthly minimum of

Rs.30 per installation per

month.


RECS


Commission’s Views/ Decision

The Government of Karnataka has continued its policy of providing free power

to all BJ/KJ consumers with a single outlet, whose consumption is not more than

40 units per month, vide Government Order No. EN12 PSR 2017 dated

20th March, 2017 (instead of the earlier limit of 18 units per month). Based on the

present average cost of supply, the tariff payable by these BJ/KJ consumers is

revised to Rs.6.34 per unit.

Further, the ESCOMs have to claim subsidy for only those consumers who

consume 40 units or less per month per installation. If the consumption exceeds

40 units per month or if any BJ/KJ installation is found to have more than one out-

let, it shall be billed as per the Tariff Schedule LT 2(a).

Accordingly, Commission determines the tariff (CDT) in respect of BJ / KJ

installations as follows:

LT – 1 Approved Tariff for BJ / KJ installations

Commission determined Tariff Retail Supply Tariff determined

by the Commission

634 paise per unit,

Subject to a monthly minimum of

Rs.40 per installation per month.

-Nil-*

Fully subsidized by GoK

*Since GOK is meeting the full cost of supply to BJ / KJ installations, the Tariff payable by

these Consumers is shown as nil. However, if the GOK does not release the subsidy in

advance, a Tariff of Rs.6.34 per unit subject to a monthly minimum of Rs.40 per installation per

month, shall be demanded and collected from these consumers.

2. LT2 - Domestic Consumers:

HUKERI RECS’s Proposal:

The details of the existing and proposed tariff under this category are given in the

Table below:


RECS


Proposed Tariff for LT-2 (a)

LT-2 a (i) Domestic Consumers Category

Applicable to areas coming under City Municipal Corporations and all Urban

Local Bodies

Details Existing as per 2017

Tariff Order


Fixed Charges

per Month

For the first KW Rs.40 For the first KW Rs.40

For every additional KW

Rs.50


Rs.50

Energy Charges

0-30 units

(life line

Consumption )

0 to 30 units:325

paise/unit 0 to 30 units: 400 paise/unit

Energy Charges

exceeding 30

units per month

31 to 100 units:470

paise/unit

31 to 100 units: 545 paise

/ unit

101 to 200 units:625

paise /unit

101 to 200 units:700 paise

/unit

Above 200 units:730

paise/unit

Above 200 units:805 paise

/unit

LT-2(a)(ii) Domestic Consumers Category

Applicable to Areas under Village Panchayats

Details Existing as per 2017 Tariff

Order


Fixed charges per

Month

For the first KW Rs.25 For the first KW Rs.25


Rs.40

For every additional

KW Rs.40

Energy Charges

0-30 units ( life line

Consumption )

Upto 30 units:315 paise/

unit

0 to 30 units:390 paise/unit

Energy Charges

exceeding 30 Units

per month

31 to 100 units:440 paise/

unit

31 to 100 units:515 paise/

unit

101 to 200 units:595

paise/unit

101 to 200 units: 670

paise/unit

Above 200 units: 680

paise/unit

Above 200 units:755

paise/unit


RECS


Commission’s decision

As in the previous Tariff Order, the Commission decides to continue with the two

tier tariff structure in respect of the domestic consumers as shown below:

(i) Areas coming under City Municipal Corporations and all Urban Local Bodies.

(ii) Areas under Village Panchayats.

The Commission approves the tariff for this category as follows:

Approved Tariff for LT 2 (a) (i) Domestic Consumers Category:

Applicable to Areas coming under City Municipal Corporations and all Urban

Local Bodies

Details Tariff approved by the

Commission

Fixed charges per Month For the first KW: Rs.50/-

For every additional KW Rs.60/-

Energy Charges upto 30 units per month

(0-30 units)-life line consumption.

Upto 30 units: 345paise/unit

Energy Charges in case the

consumption exceeds 30 units per

month



Above 200 units: 755 paise/unit

Approved Tariff for LT-2(a) (ii) Domestic Consumers Category:


Details Tariff approved by the

Commission

Fixed Charges per Month For the first KW: Rs.35/-

For every additional KW Rs.50/-

Energy Charges upto 30 units per month

(0-30 Units)-Lifeline Consumption

Upto 30 units: 335 paise/unit

Energy Charges in case the consumption

exceeds 30 units per month

31 to 100 units: 465 paise/unit

101 to 200 units:620paise/unit



RECS


LT2 (b) Private and Professional Educational Institutions, Private Hospitals and

Nursing Homes:


The details of the existing and the proposed tariff under this category are given in

the Table below:

LT 2 (b) (i)Applicable to areas under City Municipal Corporations Areas and all

urban Local Bodies

Details Existing as per 2017 Tariff Order Proposed by HUKERI RECS

Fixed

Charges per

Month

Rs.55 Per KW subject to a

minimum of Rs.85 per month

Rs.55 Per KW subject to a

minimum of Rs.85 per

month

Energy

Charges

For the first 200 units: 650

paise per unit

For the first 200 units : 725

paise per unit

Above 200 units: 775 paise per

unit

For the balance units : 850

paise per unit

LT 2 (b)(ii) Applicable to Areas under Village Panchayats


Fixed

Charges per

Month

Rs.45 per KW subject to a

minimum of Rs.70 per Month

Rs.45 per KW subject to a

minimum of Rs.70 per Month

Energy

Charges


paise per unit

For the first 200 units:670 paise

per unit

Above 200 units: 720 paise per

unit

For the balance units:795

paise per unit


As in the previous Tariff Order, the Commission decides to continue the two tier

tariff structure as follows:


RECS


(i) Areas coming under City Municipal Corporation and all urban local bodies.


Approved Tariff for LT 2 (b) (i)

Private Professional and other private Educational Institutions, Private Hospitals

and Nursing Homes

Applicable to areas under City Municipal Corporations and all other urban Local

Bodies.

Details Tariff approved by the Commission

Fixed Charges per Month Rs.65 per KW subject to a minimum of Rs.90

per Month

Energy Charges 0-200 units: 670 paise/unit


Approved Tariff for LT 2 (b) (ii)

Private Professional and other private Educational Institutions, Private Hospitals

and Nursing Homes



Fixed Charges per Month Rs.55 per KW subject to a minimum of Rs.75 per

Month

Energy Charges 0-200 units: 615 paise/unit


3. LT3- Commercial Lighting, Heating & Motive Power:


The existing and proposed tariffs are as follows:


RECS


LT- 3 (i) Commercial Lighting, Heating & Motive Power

Applicable to Areas coming under City Municipal Corporation and urban local

bodies


Order


Fixed charges per

Month

Rs.60 per KW Rs.60 per KW

Energy Charges For the first 50 units:750 paise

per unit


per unit


paise per unit

For the balance units: 925

paise per unit

Demand based tariff (optional) where sanctioned load is above 5 KW but below 50

KW.


Fixed

charges


Energy

Charges


per unit

For the first 50 units:825paise

per unit

For the balance units:850 paise

per unit


paise per unit

LT-3 (ii) Commercial Lighting, Heating & Motive

Applicable to areas under Village Panchayats


Fixed Charges per

Month


Energy Charges For the first 50 units: 700 paise

per unit


paise per unit


paise per unit

For the balance units: 875 paise

per unit


RECS


Demand based tariff (optional) where sanctioned load is above 5 KW but below

50 KW


Order


Fixed Charges per

Month


Energy Charges For the first 50 units: 700

paise per unit


paise per unit


paise per unit


paise per unit

Commission’s Views/ Decision

As in the previous Tariff Order, the Commission decides to continue with the two

tier tariff structure as below:

(i) Areas coming under City Municipal Corporations and other urban local

bodies.


Approved Tariff for LT- 3 (i) Commercial Lighting, Heating & Motive

Applicable to areas under City Municipal Corporations and other Urban Local

Bodies

Details Approved by the Commission

Fixed Charges per Month Rs.70 per KW

Energy Charges For the first 50 units: 775 paise/ unit

For the balance units: 875 paise/unit

Approved Tariff for Demand based tariff (Optional) where sanctioned load is

above 5 kW but below 50 kW



Energy Charges For the first 50 units:775 paise /unit

For the balance units:875 paise/unit


RECS


Approved Tariff forLT-3 (ii) Commercial Lighting, Heating and Motive

Applicable to areas under Village Panchayats


Fixed charges per Month Rs.60 per KW

Energy Charges For the first 50 units: 725 paise per unit

For the balance units: 825 paise per unit

Approved Tariff for Demand based tariff (Optional)where sanctioned load is

above 5 kW but below 50 kW



Energy Charges For the first 50 units: 725 paise per unit

For the balance units: 825 paise per unit

4. LT4-Irrigation Pump Sets:


The existing and proposed tariff for LT4 (a) are as follows:

LT-4 (a) Irrigation Pump Sets

Applicable to IP sets up to and inclusive of 10 HP


Order


Fixed charges per

Month

Nil Nil

Energy charges CDT 579 paise per unit CDT 654 paise per unit

Commission’s Decision

The Government of Karnataka has extended free supply of power to farmers as

per the Government Order No. EN 55 PSR 2008 dated 04.09.2008. As per this

policy of GoK, the entire cost of supply to IP sets upto and inclusive of 10 HP is

being borne by the GoK through tariff subsidy. In view of this, all the consumers

under the existing LT-4(a) tariff are covered under free supply of power.


RECS


Considering the cross subsidy contribution from categories other than IP Sets and

BJ/KJ Categories, the Commission determines the tariff for IP Sets under LT4(a)

category as follows:

Approved CDT for IP Sets for FY19

Particulars HUKERI

RECS

Approved ARR in Rs. Lakhs 17678.60

Revenue from other than IP & BJ/KJ installations in Rs. Lakhs 5219.70

Amount to be recovered from IP & BJ/KJ installations in Rs. Lakhs 12442.80

Approved Sales to BJ/KJ installations in MU 3.499

Revenue from BJ/KJ installations at Average Cost of supply in Rs. Lakhs 221.80

Amount to be recovered from IP Sets category in Rs. Lakhs 12221.00

Approved Sale to IP Sets in MU 201.999

Commission Determined Tariff (CDT) for IP set Category for FY19 in

Rs/Unit 6.05

Accordingly, the Commission decides to approve tariff of Rs.6.05 per unit as CDT

for FY19 for IP Set category under LT4 (a). In case the GoK does not release the

subsidy in advance, the tariff of Rs.6.05 per unit shall be demanded and

collected from these consumers.

Approved by the Commission

LT-4 (a) Irrigation Pump Sets

Applicable to IP sets up to and inclusive of 10 HP


Fixed charges per Month Energy charges Nil*

CDT (Commission Determined Tariff): 605 paise per unit

* In case the GoK does not release the subsidy in advance, a tariff of Rs.6.05 per

unit shall be demanded and collected from these consumers.


RECS


The Commission has been issuing directives to ESCOMs for conducting Energy

Audit at the Distribution Transformer Centre (DTC)/feeder level for proper

assessment of distribution losses and to enable detection and prevention of

commercial loss. In view of substantial progress in implementation of feeder

segregation under NJY scheme, the ESCOMs were also directed to submit IP set

consumption on the basis of the meter readings of the 11 kV feeders at the

substation level duly deducting the energy losses in 11kV lines, distribution

transformers & LT lines, in order to compute the consumption of power by IP sets

accurately. Further, in the Tariff Order 2016, the ESCOMs were also directed to

take up enumeration of IP sets, 11 kV feeder-wise by capturing the GPS

co-ordinates of each live IP set in their jurisdiction. In this regard, the Commission

has noted that the ESCOMs have complied partly with these directions and have

initiated measures to achieve full compliance. The ESCOMs need to ensure full

compliance as this has direct impact on their revenues and tariff payable by

other categories of consumers.

The Government of Karnataka vide its letter dated 16.12.2017 has informed the

Commission that for FY19, an amount of Rs.8040.26 Crores is available for the

subsidized supply to BJ/KJ installations and IP sets, and that there is no change in

the Policy of the Government in the matter of free supply to BJ/KJ consumers

(consuming up to 40 Units) and IP sets consumers with a contract demand of 10

HP and below. It is also informed that in case, the amount required for the

subsidized supply to this is in excess of the available amount, the government is

unable to meet the balance amount in the subsequent year.

In reply to the above letter the Commission, in its letter dated 11.01.2018 has

informed the Government that as per the provisions of the Electricity Act, 2003

and in view of the Policy of the State Government to supply free power to BJ/KJ

installations (consuming up to 40 Units per month) and IP Sets having sanctioned

load of 10 HP and below, the Government has to fully meet the cost of such

subsidized supply. The Commission has made it clear to the Government that the

shortfall in subsidy cannot be passed on to the other consumers, who are


RECS


already paying tariffs with high level of cross subsidies and any increase in such

higher tariff of other consumers would correspondingly increase the cross subsidy

levels, which would be against the provisions of Electricity Act and the Tariff

Policy, that emphasize gradual reduction in cross subsidy at a level not

exceeding plus or minus 20% of the cost of supply. In view of the above the

Government was requested to consider the following alternatives:

a) In view of the Policy decision taken by the Government to supply free

power supply to BJ/KJ and IP sets installations, the Government has to

provide full subsidy as committed in the Government Order dated 4th

September, 2008, as the shortfall in the subsidy cannot be made good by

charging higher tariff to other consumers, as they are already cross

subsidizing beyond the maximum ceiling limit prescribed under the Tariff

Policy.

b) If the Government is not able to provide adequate subsidy towards free

power to the BJ/KJ and IP set installations, the present 7 hours three phase

power being supplied to the IP sets shall have to be proportionately

reduced. Based on the reduced allocation of subsidy the quantum of

power that could be supplied to IP sets would be 12597.28 MU and the

duration of supply could be four hours per day, instead of seven hours.

c) In case, the reduction of quantum of power is not possible, the shortfall in

the subsidy shall be made good by the IP set consumers.

The Commission has not received reply from the Government.

Under the circumstances, the Commission directs the ESCOMs as follows:

The ESCOMs shall manage supply of power to the IP sets for the FY19, so as to

ensure that it is within the quantum of subsidy committed by the GoK. While

doing so, they shall procure power which is proportionate to such supply. In


RECS


case, the ESCOMs choose to supply power to the IP sets in excess of the

quantum proportionate to the amount of subsidy available from the GoK for FY19,

the difference in the amount of subsidy relating to such supply shall be claimed

from the GoK. If the difference in subsidy is not paid by the GoK, the same shall

be collected from the IP set consumers.

LT4 (b) Irrigation Pump Sets above 10 HP:

HUKERI RECS’s Proposal

The Existing and proposed tariff for LT-4(b) category are as follows:

LT-4 (b) Irrigation Pump Sets:

Applicable to IP Sets above 10 HP


Order

Proposed by HUKERI

RECS

Fixed charges per

Month

Rs.50 per HP Rs.50 per HP

Energy charges for

the entire

consumption

300 paise per unit 375 paise per unit

The existing and proposed tariff for LT4(c) are as follows:

LT-4 (c) (i) - Applicable to Private Horticultural Nurseries, Coffee, Tea & Rubber

plantations up to & inclusive of 10 HP


Order

Proposed by HUKERI

RECS

Fixed charges per

Month


Energy charges for

the entire

consumption



RECS


LT-4 (c) (ii) - Applicable to Private Horticultural Nurseries, Coffee, Tea & Rubber

plantations above 10 HP


Order

Proposed by HUKERI

RECS

Fixed charges per

Month


Energy charges for

the entire

consumption


Approved Tariff:

The Commission decides to revise the tariff in respect of these categories as

shown below:

LT-4 (b) Irrigation Pump Sets:

Applicable to IP Sets above 10 HP

Fixed charges per Month Rs.60 per HP

Energy charges for the entire consumption 325 paise/unit

LT4(c) (i) - Applicable to Horticultural Nurseries,

Coffee, Tea &Rubber plantations up to & inclusive of 10 HP


Energy charges 325 paise / unit

LT4 (c)(ii) - Applicable to Horticultural Nurseries, Coffee, Tea & Rubber

plantations above 10 HP


Energy charges 325 paise/unit


RECS


5. LT5 Installations-LT Industries:


The existing and proposed tariffs under this category are given below:

LT-5 (a) LT Industries:

Applicable to areas under City Municipal Corporation

i) Fixed charges


Fixed

charges

per Month

i) Rs. 40 per HP for 5 HP &

below

ii) Rs. 45 per HP for above 5 HP

& below 40 HP

iii) Rs. 60 per HP for 40 HP &

above but below 67 HP

iv)Rs. 120 per HP for 67 HP &

above

NA

Demand based Tariff (Optional)

Details Description Existing Tariff as per

2017 Tariff Order

Proposed by

HUKERI RECS

Fixed

Charg

es per

Month

Above 5 HP and less

than 40 HP

Rs.60 per KW of billing

demand

NA

40 HP and above but

less than 67 HP


demand

67 HP and above Rs.170 per KW of

billing demand

ii) Energy Charges


Tariff Order


For the first 500 units 510 paise per unit NA

For next 500 units 605 paise per unit

For the balance unit 635 paise per unit


RECS


LT-5 (b) LT Industries:

Applicable to all areas other than those covered under LT-5(a)

i) Fixed charges


Demand based Tariff (optional)

Details Description Existing Tariff as per

2017 Tariff Order

Proposed by HUKERI

RECS Fixed Charges per Month

Above 5 HP and

less than 40 HP

Rs.55 per KW of

billing demand

Rs.55 per KW of

billing demand

40 HP and above

but less than 67 HP

Rs.80 per KW of

billing demand

Rs.80 per KW of

billing demand

67 HP and above Rs.160 per KW of

billing demand

Rs.160 per KW of

billing demand

ii) Energy Charges


Order


For the first 500 units 500 paise per unit 575 paise/ unit

For the next 500 units 590 paise per unit 665 paise/ unit

For the balance units 620 paise per unit 695 paise/ unit

Existing ToD Tariff for LT5 (a) & (b): At the option of the consumers

Time of Day Increase (+ )/ reduction (-) in energy

charges over the normal tariff applicable

06.00 Hrs to 10.00 Hrs (+) 100 paise per unit

10.00 Hrs to 18.00 hrs 0

Fixed

Charges per

Month

i)Rs.35 per HP for 5 HP &

below

ii) Rs.40 per HP for above 5 HP

& below 40 HP

iii) Rs.55 per HP for 40 HP &


iv)Rs.110 per HP for 67 HP &

above

i) Rs.35 per HP for 5 HP &

below

ii) Rs.40 per HP for above 5

HP & below 40 HP

iii) Rs.55 per HP for 40 HP &


iv)Rs.110 per HP for 67 HP &

above

ToD Tariff


RECS



22.00 Hrs to 06.00 Hrs (-) 100 paise per unit

Proposed ToD Tariff for LT5 (a) & (b): At the option of the consumers




10.00 Hrs to 18.00 hrs 0



Commission’s Decision:

Time of the Day Tariff:

The decision of the Commission in its earlier Tariff Orders, providing for mandatory

Time of Day Tariff for HT2(a), HT2(b) and HT2(c) consumers with a contract

demand of 500 KVA and above is continued. The existing optional ToD will

continue for HT2(a), HT2(b) and HT2(c) consumers with contract demand of less

than 500 KVA. Further, for LT5 and HT1 consumers, the existing optional ToD is

continued.

The Commission takes note of the request made by the consumer of other

categories to extend the same concession as given in the energy charges to the

Effluent Treatment Plant situated within the industrial premises. The Commission

having considered the environmental and the social benefits from the Effluent

Treatment Plants and Drainage Water Treatment plants owned other than by

local bodies situated within the premises of the installation, decides to bill the

electricity consumed by the effluent plants and drainage water treatment plants

from the main meter or by sub-meter, at the same tariff schedule, as applicable

to the installations for which the power supply is availed.

ToD Tariff


RECS


The Commission notes the request made by the ESCOMs for billing the power

supply to Solid Waste processing plants under LT and HT industrial category. The

Commission by considering the environmental and social benefits in processing

of solid waste by such plants, decides to approve billing by ESCOMs for the

power supply arranged to such plants under LT/HT industrial tariff.

The Commission decides to continue with two tier tariff structure introduced in the

previous Tariff Orders, which are as follows:

i) LT5 (a): For areas falling under City Municipal Corporations

ii) LT5 (b): For areas other than those covered under LT5 (a) above.

Approved Tariff:

The Commission approves the tariff under LT 5 (a) and LT 5 (b) categories as

given below:

Approved Tariff for LT 5 (a):

Applicable to areas under City Municipal Corporations

i) Fixed charges


Fixed

Charges per

Month

i) Rs.45 per HP for 5 HP & below

ii) Rs.50 per HP for above 5 HP & below 40 HP

iii) Rs.70 per HP for 40 HP & above but below 67 HP

iv) Rs.130 per HP for 67 HP & above

Demand based Tariff (optional)

Fixed

Charges per

Month

Above 5 HP and less than 40

HP


demand

40 HP and above but less

than 67 HP


demand

67 HP and above Rs.180 per KW of billing

demand


RECS


ii) Energy Charges


For the first 500 units 530 paise/unit

For the next 500 units 625 paise/ unit

For the balance units 655 paise/ unit

Approved Tariff for LT 5 (b):

Applicable to all areas other than those covered under LT-5(a)

i) Fixed charges

Details Approved Tariff

Fixed

Charges

per Month

i) Rs.40 per HP for 5 HP & below

ii) Rs.45 per HP for above 5 HP & below 40 HP

iii) Rs.65 per HP for 40 HP & above but below 67 HP

iv)Rs.120 per HP for 67 HP & above

ii) Demand based Tariff (optional)

Details Description Approved Tariff

Fixed Charges per

Month

Above 5 HP and less

than 40 HP


demand

40 HP and above but less

than 67 HP


demand

67 HP and above Rs.170 per KW of billing

demand

iii) Energy Charges

Details Approved tariff

For the first 500 units 520 paise/ unit

For the next 500 units 610 paise/ unit

For the balance units 640 paise/unit


RECS


As discussed earlier in this Chapter, the approved ToD Tariff for LT5 (a) & (b): At the

option of the consumers




10.00 Hrs to 18.00 Hrs 0

18.00 Hrs to 22.00 hrs (+) 100 paise per unit


6. LT6 Water Supply Installations and Street Lights:


The existing and the proposed tariffs are given below:

LT-6(a) : Water Supply


Order

Proposed by HUKERI

RECS

Fixed charges per

Month

Rs.55/HP/month Rs.55/HP/month

Energy charges 425 paise/unit 500 paise/unit

LT-6 (b) : Public Lighting


Order


Fixed charges

per Month

Rs.70/KW/month Rs.70/KW/month

Energy charges

without LED bulbs

585 paise/unit 660 paise/unit

Energy charges

for LED /

Induction

485 paise/unit 560 paise/unit


The Commission approves the tariff for these categories as follows:

ToD Tariff


RECS


Tariff Approved by the Commission for LT-6 (a): Water supply


Fixed Charges per Month Rs.65/HP/month


Tariff Approved by the Commission for LT-6 (b): Public Lighting


Fixed charges per Month Rs.80 /KW/month


Energy charges for LED / Induction Lighting 505 paise/unit

Electric Vehicle Charging Stations (Newly Introduced Tariff)

As discussed earlier in this chapter, the Commission decides to introduce an

additional sub category of LT-6(c) under LT-6 tariff category for the supply of

power to Electric Vehicle Charging Stations under LT and HT supply.

The Commission approved tariff to this new sub category is as under:

Tariff Approved by the Commission for LT-6 (c)


Under LT Supply Fixed charges per KW Rs.50 /KW/month

Under HT Supply DC per KVA Rs.180 /KW/month

Energy charges per

KWH for both LT & HT)

485 paise/unit

7. LT 7- Temporary Supply & Permanent supply to Advertising Hoardings:


The existing rate and the proposed rate are given below:

Tariff Schedule LT-7(a)

Applicable to Temporary power Supply for all purposes.

a) Less than 67

HP:

Energy charge at 1000

paise per unit subject

Energy charge at 1075 paise

per unit subject to a weekly


Tariff Order



RECS


to a weekly minimum

of Rs.190 per KW of

the sanctioned load.

minimum of Rs.190 per KW of

the sanctioned load.

TARIFF SCHEDULE LT-7(b)

Applicable to power supply to Hoardings & Advertisement boards

on Permanent connection basis.

a) Less than 67

HP:

Fixed Charge Rs.60

per KW/ month of the

sanctioned load

NA

Energy charge at 1000

paise per unit


As decided in the previous Tariff Order, the tariff specified for installations with

sanctioned load / contract demand above 67 HP shall continue to be covered

under the HT temporary tariff category under HT5.

With this, the Commission decides to approve the tariff for LT-7 category as

follows:

TARIFF SCHEDULE LT-7(a)

Applicable to Temporary Power Supply for all purposes.

LT 7(a) Details Approved Tariff

Temporary Power

Supply for all

purposes.

Less than 67 HP:

Energy charges at 1030 paise / unit

subject to a weekly minimum of Rs.200

per KW of the sanctioned load.


Tariff Order



RECS


TARIFF SCHEDULE LT-7(b)

Applicable to Hoardings & Advertisement boards, Bus Shelters with Advertising

Boards, Private Advertising Posts / Sign boards in the interest of public such as

Police Canopy Direction boards, and other sign boards sponsored by Private

Advertising Agencies / firms on permanent connection basis.

LT 7(b) Details Approved Tariff

Power supply on

permanent

connection basis

Less than 67 HP:

Fixed Charges at Rs.75 per KW / month

Energy charges at 1030 paise / unit

H.T. Categories:

Time of Day Tariff (ToD)

The Commission decides to continue the mandatory Time of Day Tariff for

HT2 (a), HT-2(b) and HT2(c) consumers with a contract demand of 500 KVA and

above. Further, the optional ToD will continue as existing for HT2 (a), HT-2(b) and

HT2 (c) consumers with contract demand of less than 500 KVA. The details of ToD

tariff are indicated under the respective tariff category.

As discussed earlier in this Chapter, the existing demand charges levied on the

maximum demand recorded during the month or 75% of CD whichever is higher

has been revised to maximum demand recorded during the month or 85% of CD

whichever is higher.

8. HT1- Water Supply & Sewerage


The existing and proposed tariff are as given below:


RECS


The Existing and the proposed tariff – HT-1 Water Supply and Sewerage

Installations

Details Existing tariff as per 2017

Tariff Order

Proposed Tariffs by

HUKERI RECS

Demand

charges

Rs.200 / kVA of billing

demand / month

Rs.200 / kVA for billing

demand / month

Energy

charges


Existing ToD tariff to HT-1 tariff to Water Supply & Sewerage installations at the

option of the consumer




10.00 Hrs to 18.00 Hrs 0



Proposed ToD Tariff to HT-1 category:

Time of day Increase (+) / reduction (-) in the energy



10.00 Hrs to 18.00 Hrs 0



Commission’s decision:

As discussed earlier in this Chapter, the Commission approves the tariff for HT 1

Water Supply & Sewerage category as below:

Details Approved Tariff for HT 1

Demand charges Rs.200 / kVA of billing demand / month

Energy charges 500 paise/ unit


RECS


As discussed earlier in this Chapter, the approved ToD tariff to HT-1 tariff to Water

Supply & Sewerage installations at the option of the consumer is as follows

06.00 Hrs. to 10.00 Hrs (+) 100 paise per unit

10.00 Hrs to 18.00 Hrs 0

18.00 Hrs to 22.00 Hrs (+)100 paise per unit

22.00 Hrs to 06.00 Hrs next day (-) 100 paise per unit

9. HT2 (a) – HT Industries & HT 2(b) – HT Commercial



Details Existing tariff as per Tariff

Order 2017

Proposed Tariff by

HUKERI RECS

Demand charges Rs. 200 / kVA of billing

demand / month

Rs. 200 / kVA of

billing demand /

month

Energy charges

(i) For the first one lakh

units

(ii) For the balance units

660 paise per unit

680 paise per unit

735 paise per unit

755 paise per unit

Railway traction and Effluent Plants under HT2 (a).

Details Existing tariff as per

Tariff order 2017

Tariff Proposed by HUKERI

RECS

Demand

charges

Rs. 210 / kVA at

billing demand /

month

Rs. 210 / kVA of billing

demand / month

Energy charges 620 paise per unit for

all the units

695 paise per unit for all

the units



HT – 2 (a) HT Industries

Applicable to all areas of HUKERI RECS


RECS


Existing ToD Tariff for HT-2(a)




10.00 Hrs to 18.00 Hrs 0



Proposed ToD Tariff for HT-2(a)




10.00 Hrs to 18.00 Hrs 0




The Commission in its previous Tariff Order has allowed in respect of Industries

availing HT power supply under HT2(a) tariff schedule, for the supply availed for

Effluent Treatment Plant situated within the premises by fixing a separate

sub-meter, a rebate of 50 paise per unit of electricity consumed by such Effluent

Treatment Plant in the applicable tariff schedule without reduction in the demand

of the main HT supply.

The Commission takes note of the request made by the consumer of other

categories to extend the same concession as given in the energy charges to the

Effluent Treatment Plant situated with in the industrial premises. The Commission

having considered the environmental and the social benefit from the Effluent

Treatment Plants and Drainage Water Treatment plants owned other than by local

bodies situated within the premises of the installation, decides to allow billing of

the electricity consumed by the Effluent Treatment Plants and Drainage Water


RECS


Treatment plants from the main meter or by sub-meter, at the same respective tariff

schedule as applicable to the installations for which the power supply is availed.

The Commission notes the request made by the ESCOMs for billing the power

supply to Solid Waste processing plants under HT industrial category. The

Commission by considering the Environmental and Social benefits in processing of

the solid waste by such plants, decides to approve billing by ESCOMs of the power

supply arranged to such plants under HT industrial tariff.

Approved Tariff for HT – 2 (a):

As discussed earlier in this chapter, the Commission approves the tariff for HT 2(a)

category as below:

i) Approved Tariff for HT2(a)

Applicable to all areas under HUKERI RECS



Energy charges

For the first one lakh units 675 paise/ unit

For the balance units 700 paise/ unit

As discussed earlier in this Chapter, the approved ToD tariff to HT2(a)(i) & (ii)

tariff.


10.00 Hrs to 18.00 Hrs 0


22.00 Hrs to 06.00 Hrs (-)100 paise per unit

Note: ToD Tariff is not applicable to Railway Traction installations.




RECS


iii) Railway Traction under both HT2(a)(i) & HT 2(a)(ii)


Demand charges Rs. 210 / kVA of billing demand / month

Energy charges 600 paise / unit for all the units

The Commission, by considering the concessional tariff extended to the Railway

traction, decides not to extend the new special incentive scheme approved in this

Tariff Order and the ToD tariff to the installations of Railway traction.

iv) Effluent Treatment Plants independently serviced outside the premises of any

installation under both HT2(a)(i) & HT 2(a)(ii)


Demand charges Rs. 210 / kVA of billing demand / month

Energy charges 640 paise / unit for all the units

Note: The ToD tariff is applicable to these installations, if the New Special

Incentive Scheme is not opted.

10. HT-2 (b) HT Commercial



Existing and proposed tariff HT – 2 (b) HT Commercial

Applicable to all areas of HUKERI RECS


Tariff Order 2017

Tariff Proposed by

HUKERI RECS

Demand charges Rs.220 / kVA of billing

demand / month


demand / month

Energy charges

(i) For the first two lakh units 825 paise per unit 900 paise per unit

(ii)For the balance units 835 paise per unit 910 paise per unit


RECS


xisting ToD Tariff for HT-2(b)




10.00 Hrs to 18.00 Hrs 0



Proposed ToD Tariff for HT-2(b)




10.00 Hrs to 18.00 Hrs 0




The Commission notes the issue raised by the consumer of Diagnostic centres

and their request to classify under HT-2(c)(ii) category. The Commission

examined the issue in detail and decided to classify the HT power supply to

Diagnostic centres running on commercial lines under HT-2(b) category.

As discussed earlier in this chapter, the Commission approves the following tariff

for HT 2 (b) consumers:

Approved tariff for HT – 2 (b) - HT Commercial - Applicable to all areas of HUKERI

RECS



Energy charges

(i) For the first two lakh units 845 paise per unit

(ii) For the balance units 855 paise per unit

Note: The above tariff under HT2 (b) is not applicable for construction of new industries.

Such power supply shall be availed only under the temporary category HT5.


RECS


Approved ToD Tariff for HT-2(b)


10.00 Hrs to 18.00 Hrs 0


22.00 Hrs to 06.00 Hrs next day (-)100 paise per unit

11. HT – 2 (c) – Applicable to Hospitals and Educational Institutions:

The existing and proposed tariff are given below:

Existing and proposed tariff for HT – 2 (c) (i)

Applicable to Government Hospitals & Hospitals run by Charitable Institutions & ESI

Hospitals

and

Universities, Educational Institutions belonging to Government, Local Bodies and Aided

Institutions and Hostels of all Educational Institutions


Tariff Order 2017

Tariff Proposed by

HUKERI RECS


demand / month


demand / month

Energy charges

(i) For the first one lakh units 640 paise per unit 715 paise per unit

(ii) For the balance units 680 paise per unit 755 paise per unit

Existing and proposed tariff for HT – 2 (c) (ii) –

Applicable to Hospitals and Educational Institutions other than those covered under HT2(c) (i)


Tariff Order 2017

Tariff Proposed by

HUKERI RECS

Demand charges Rs. 200 / kVA of billing

demand / month

Rs. 200 / kVA of billing

demand / month

Energy charges

(i) For the first one lakh units 740 paise per unit 815 paise per unit

(ii) For the balance units 780 paise per unit 855 paise per unit




RECS


Existing ToD Tariff for HT-2(c)(i) & (ii)




10.00 Hrs to 18.00 Hrs 0



Proposed ToD Tariff for HT-2 HT-2(c)(i) & (ii)




10.00 Hrs to 18.00 Hrs 0




The Commission approves the following tariff for HT2(c) consumers.

Approved tariff for HT – 2 (c) (i)

Applicable to Government Hospitals, Hospitals run by Charitable Institutions, ESI

Hospitals,

Universities and Educational Institutions belonging to Government& Local Bodies, Aided

Educational Institutions and Hostels of all Educational Institutions


Demand charges Rs.200/ kVA of billing demand / month

Energy charges

(i) For the first one lakh units 660 paise per unit



RECS


Approved tariff for HT – 2 (c) (ii)

Applicable to Hospitals/Educational Institutions other than those covered under HT2(c) (i)



Energy charges

(i) For the first one lakh units 760 paise per unit


As discussed earlier in this Chapter approved ToD for Tariff to HT-2(c) (i) & (ii)


10.00 Hrs to 18.00 Hrs 0


22.00 Hrs to 06.00 Hrs next day (-)100 paise per unit

12. HT-3(a) Lift Irrigation Schemes under Government Departments / Government

owned Corporations/ Lift Irrigation Schemes under Pvt ./Societies:

The existing and proposed tariff are given below:

Existing and proposed tariff for HT – 3 (a) –Lift Irrigation Schemes

HT 3(a) (i) Applicable to LI Schemes under Government Departments /

Government owned Corporations

Details Existing charges as per Tariff

Order 2017

Proposed charges by

HUKERI RECS

Energy

charges/

Minimum

charges

225 paise / unit

Subject to an annual minimum

of Rs.1240 per HP / annum

300 paise / unit

Subject to an annual

minimum of Rs. 1240

per HP / annum

HT 3(a) (ii) Applicable to Pvt. LI Schemes and Lift Irrigation Societies:

Fed through Express / Urban feeders

Details Existing Tariff as per Tariff

Order 2017

Proposed by HUKERI

RECS




RECS


Fixed charges Rs. 50 / HP / Month of

sanctioned load

Rs.50 / HP / Month of

sanctioned load

Energy charges 225 paise / unit 300 paise / unit

HT 3(a) (iii) Applicable to Pvt. LI Schemes and Lift Irrigation Societies:

other than those covered under HT-3 (a)(ii)

Details Existing Tariff as per Tariff

Order 2017

Proposed by HUKERI

RECS

Fixed charges Rs.30 / HP / Month of

sanctioned load

Rs.30 / HP / Month of

sanctioned load

Energy charges 225 paise / unit 300 paise / unit


The Commission approves the following tariff for HT3(a) consumers:

Approved tariff for HT 3 (a) (i)

Energy charges /

Minimum charges

250 paise/ unit subject to an annual

minimum of Rs.1360 per HP / annum

Approved tariff for HT 3 (a) (ii)

Applicable to Private LI Schemes and Lift Irrigation Societies fed through express

/ urban feeders

Fixed charges Rs.60 / HP / Month of sanctioned load


Approved tariff for HT 3 (a) (iii)

Applicable to Private LI Schemes and Lift Irrigation Societies other than

those covered under HT 3 (a) (ii)

Fixed charges Rs.40 / HP / Month of sanctioned load


13. HT3 (b) Irrigation & Agricultural Farms, Government Horticulture farms, Private

Horticulture Nurseries, Coffee, Tea, Coconut & Arecanut Plantations:

Applicable to LI schemes under Govt. Dept. / Govt. owned Corporations


RECS



The existing and the proposed tariff are given below:

HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms, Private

Horticulture Nurseries, Coffee, Tea, Coconut & Arecanut Plantations:

Details Existing Tariff Order 2017 Proposed tariff by HUKERI

RECS

Energy charges /

minimum

charges

425 paise / unit subject to

an annual minimum of

Rs.1240 per HP of

sanctioned load

500 paise / unit subject to

an annual minimum of

Rs.1240 per HP of

sanctioned load


The Commission approves the tariff for this category as indicated below:

Approved Tariff

HT3 (b)- Irrigation & Agricultural Farms, Government Horticulture farms, Private

Horticulture Nurseries, Coffee, Tea, Rubber, Coconut & Arecanut Plantations:


Energy charges /

minimum charges

450 paise / unit subject to an annual minimum of

Rs.1360 per HP of sanctioned load

14. HT4- Residential Apartments/ Colonies:


The existing and the proposed tariff for this category are given below:

Existing and proposed tariff for HT – 4 - Residential Apartments/ Colonies

HT – 4 Applicable to all areas.

Details Existing Tariff Order 2017 Tariff Proposed by

HUKERI RECS


demand


demand

Energy charges 620 paise per unit 695 paise/ unit


RECS



As discussed earlier in this chapter, the Commission approves the tariff for this

category as indicated below:

Approved tariff

HT – 4 Residential Apartments/ Colonies Applicable to all areas

Demand charges Rs.120 / kVA of billing demand

Energy charges 640 paise/ unit

15. TARIFF SCHEDULE HT-5


The existing and the proposed tariffs are given below:

HT – 5 – Temporary supply

67 HP and above: Existing Proposed

Fixed charges /

Demand Charges

Rs.240/HP/month for the

entire sanction load /

contract demand

Rs.240/HP/month for the

entire sanction load /

contract demand

Energy Charge 1000 paise / unit 1075 paise / unit

Commission’s Views/Decisions:

TARIFF SCHEDULE HT-5

(i) As approved in the Commission’s Tariff Order dated 6th May, 2013, this

Tariff is applicable to 67 HP and above hoardings and advertisement

boards and construction power for industries excluding those categories

of consumers covered under HT2(b) Tariff schedule availing power supply

for construction power for irrigation and power projects and is also

applicable to power supply availed on temporary basis with the contract

demand of 67 HP and above of all categories.


RECS


Approved Tariff for HT – 5 – Temporary supply

67 HP and above: Approved Tariff

Fixed Charges /

Demand Charges

Rs.250 /HP/month for the entire sanction load /

contract demand

Energy Charges 1030 paise / unit

The Approved Tariff schedule for FY19 is enclosed in Annexure – IV of this Order.

4.6 Wheeling and Banking Charges:

HRECS in their Tariff Petition had not furnished the details of wheeling charges &

cross subsidy surcharge applicable for FY-19. Hence, the Commission had

directed HRECs to submit the same.

Hukeri RECS in its reply has stated that there is no consumer who are eligible or

willing to wheel electricity at 11 KV level and therefore it would be unnecessary

to determine the wheeling charges. It is further stated that the Hon’ble

Commission is determining the wheeling charges & cross subsidy surcharge on

the basis of the same formula which are applied in HESCOM for segregating the

ARR between distribution business and retail supply business. Therefore, HRECS

has submitted that the same may be followed for FY19 also.

The Commission has noted the replies furnished by HRECS. Since HRECS has not

proposed wheeling charges and has also not provided the segregation of cost

between distribution and retail supply business, the Commission has segregated

the ARR between distribution business and retail supply business in the same

proportion as in HESCOM. Further, the allocation of loss is based on the energy

flow diagram furnished for FY19 by HRECS. As such the wheeling charges for

HRECS is as indicated below:

4.6.1 Wheeling within HUKERI RECS Area:

The wheeling charges to each voltage level are worked out as under:


RECS


Paise/unit

HT-network 22.21

LT-network 51.83

In addition to the above, the following technical losses are applicable to all

open access/wheeling transactions:

Loss allocation % loss

HT 6.66

LT 6.71

Note: Total loss is allocated to HT, LT & Commercial loss based on energy flow diagram furnished by HUKERI

RECS.

The actual wheeling charges payable (after rounding off) will depend upon the

point of injection & point of drawl as under:

Injection point

Drawl point

HT LT

HT 22(6.66%) 74(13.37%)

LT 74(13.37%) 52(6.71%)

Note: Figures in brackets are applicable losses

The wheeling charges as determined above are applicable to all the open

access or wheeling transactions for using the HRECS network, subject to

paragraphs 4.6.3 & 4.6.4 below with respect to renewable sources of energy.

4.6.2 WHEELING OF ENERGY USING TRANSMISSION NETWORK OR NETWORK OF MORE

THAN ONE LICENSEE

In case the wheeling of energy [other than RE sources wheeling to consumers

within the State] involves usage of Transmission network or network of more than

one licensee, the charges shall be as indicated below:


RECS


i. If only transmission network is used, transmission charges determined by the

Commission shall be payable to the Transmission Licensee.

ii. If the Transmission network and the ESCOMs’ network are both used, Transmission

Charges shall be payable to the Transmission Licensee.

Wheeling Charges of the ESCOM where the power is drawn shall be shared

equally among the ESCOMs whose networks are used.

Illustration:

If a transaction involves both transmission network and HUKERI RECS’s network

and 100 units are injected, then at the drawal point the consumer is entitled for

83.96 units, after accounting for Transmission loss of 3.08% & HUKERI RECS’s

distribution loss(Technical) of 13.37%.

The Transmission charge in cash as determined in the Transmission Tariff Order

shall be payable to KPTCL & Wheeling charge of 74 paise per unit shall be

payable to HUKERI RECS. In case, more than one ESCOM is involved, the above

74 paise shall be shared by all the ESCOMs involved.

iii. If distribution licensees’ network only is used, the Wheeling Charges of the

distribution licensee where the power is drawn is payable and it shall be shared

equally among the distribution licensees whose networks are used.

Illustration:

If a transaction involves injection to BESCOM’s network & drawal at HUKERI

RECS’s network, and 100 units are injected, then at the drawal point the

consumer is entitled for 86.63 units, after accounting HUKERI RECS’s loss of 13.37%.

The Wheeling charges of 74 paise per unit applicable to HUKERI RECS shall be

equally shared between HUKERI RECS & BESCOM.

4.6.3 CHARGES FOR WHEELING OF ENERGY BY RE SOURCES (NON-REC ROUTE) TO

CONSUMERS IN THE STATE


RECS


The separate orders issued by the Commission from time to time in the matter of

wheeling and banking charges for RE sources (non-REC route), wheeling energy

to consumers within the State shall be applicable.

4.6.4 Charges for wheeling energy by RE sources wheeling energy from the State to a

consumer/others outside the state and for those opting for Renewable Energy

Certificate [REC]

In case the renewable energy is wheeled from the State to a consumer or others

outside the State, the normal wheeling charges as determined in paras 4.6.1 and

4.6.2 of this order shall be applicable. For Captive RE generators including solar

power projects opting for RECs, the wheeling charges as specified in the Orders

issued by the Commission from time to time shall be applicable.

4.6.5 BANKING CHARGES AND ADDITIONAL SURCHARGE

These charges as specified in the Orders issued by the Commission from time to

time shall be applicable.

4.6.6 Cross Subsidy Surcharge (CSS):

The Commission in its preliminary observations had directed HRECS to furnish CSS

applicable for FY-19 along with working details.

In response to the observations made by the Commission, HUKERI RECS has

stated that there are no consumers who are eligible or willing to wheel electricity

at 11 kV level and therefore it would be unnecessary to determine the CSS.

Further, it is stated that the Commission is determining wheeling charges & cross

subsidy surcharge on the basis of same formula which are applied in HESCOM for

segregating the ARR between distribution business and retail supply business.

Therefore, HRECS has submitted that the same may kindly be followed for FY-19

also.


RECS


As the Commission has determined a common cross subsidy surcharge for all the

ESCOMs, the same shall be applicable to Hukeri RECS also. As such the

applicable cross subsidy surcharge is indicated below:

Paise/unit

Particulars

66 kV

&

above

HT level-11

kV/33kV

HT-1

Water Supply 114 104

HT-2a

Industries 169 169

HT-2b

Commercial 204 204

HT-2 (C)(i) 154 154

HT-2 (C)(ii) 174 174

HT3 (a)(i)

Lift Irrigation 0

0

HT3 (a)(ii)

Lift Irrigation 0

0

HT3 (a)(iii)

Lift Irrigation 0

0

HT3 (b)

Irrigation &

Agricultural Farms

26

0

HT-4

Residential

Apartments

137 137

HT5

Temporary 307 307


RECS


The cross subsidy surcharge determined in this Order shall be applicable to all open

access/wheeling transactions in the area coming under HRECS. However, the above

CSS shall not be applicable to captive generating plant for carrying electricity to the

destination of his own use and for those renewable energy generators who have been

exempted from CSS by the specific Orders of the Commission.

The Commission directs the Licensees to account the transactions under open access

separately. Further, the Commission directs the Licensees to carry forward the amount

realized under Open Access/wheeling to the next ERC, as it is an additional income to

the Licensees.

4.7 Other Issues:

4.7.1 Tariff for Green Power:

In order to encourage generation and use of green power in the State, the

Commission decides to continue the existing Green Tariff of 50 paise per unit as

the additional tariff over and above the normal tariff to be paid by HT-

consumers, who opt for supply of green power from out of the renewable energy

procured by distribution utilities over and above their Renewable Purchase

Obligation (RPO).

4.8 Other tariff related issues:

i) Rebate for use of Solar Water Heater:

The Distribution licensees have requested the Commission to continue the

Solar water heater rebate to consumers, whereas the consumers have

requested to increase the Solar water heater Rebate. Since the use of Solar

Water Heaters is advantageous to both the ESCOMs /HRECS and the

consumers, the Commission decides to retain the existing rebate of 50 paise

per unit subject to a maximum of Rs.50 per installation per month for use of

solar water heaters.


RECS


ii) Prompt payment incentive:

The Commission had approved a prompt payment incentive at the rate of

0.25% of the bills amount (i) in all cases of payment through ECS; and (ii) in the

case of monthly bill exceeding Rs.1,00,000/- (Rs.one lakh), where payment is

made 10 days in advance of due date and (iii) advance payment of

exceeding Rs.1000 made by the consumers towards monthly bills. The

Commission decides to continue the same.

iii) Relief to Sick Industries:

The Government of Karnataka has extended certain reliefs for

revival/rehabilitation of sick industries under the New Industrial Policy 2001-06

vide G.O. No. CI 167 SPI 2001, dated 30.06.2001. Further, the Government of

Karnataka has issued G.O No.CI2 BIF 2010, dated 21.10.2010. The

Commission, in its Tariff Order 2002, had accorded approval for

implementation of reliefs to the sick industries as per the Government policy

and the same was continued in the subsequent Tariff Orders. However, in

view of issue of the G.O No.CI2 BIF 2010, dated 21.10.2010, the Commission

has accorded approval to the ESCOMs/Hukeri RECS for implementation of

the reliefs extended to sick industrial units for their revival / rehabilitation on

the basis of the orders issued by the Commissioner for Industrial Development

and Director of Industries & Commerce, Government of Karnataka / BIFR.

iv) Power Factor(PF):

The Commission in its previous order had retained the PF threshold limit and

surcharge, both for LT and HT installations at the levels existing as in the Tariff

Order 2005. The Commission decides to continue the same in the present

order as indicated below:

LT Category (covered under LT-3, LT-4, LT-5 & LT-6 where motive power is

involved): 0.85

HT Category: 0.90


RECS


v) Rounding off of KW / HP:

In its Tariff Order 2005, the Commission had approved rounding off of fractions

of KW / HP to the nearest quarter KW / HP for the purpose of billing and the

minimum billing being for 1 KW / 1HP in respect of all the categories of LT

installations including IP sets. This shall continue to be followed. In the case of

street light installations, fractions of KW shall be rounded off to the nearest

quarter KW for the purpose of billing and the minimum billing shall be for a

quarter KW.

vi) Interest on delayed payment of bills by consumers:

The Commission, in its previous Order had approved collection of interest on

delayed payment of bills at 12% per annum. The Commission decides to

continue the same in this Order also.

vii) Security Deposit (3 MMD/ 2 MMD):

The Commission had issued the KERC (Security Deposit) Regulations, 2007 on

01.10.2007and the same has been notified in the Official Gazette on

11.10.2007. The payment of security deposit shall be regulated accordingly,

pending orders of the Hon’ble High Court in WP No.18215/2007.

viii) Mode of Payment by consumers:

The Commission, in its previous Tariff Order had approved payment of

electricity bills in cash/cheque/DD of amounts up to and inclusive of

Rs. 10,000/- and payment of amounts exceeding Rs.10,000 to be made only

through cheque. The consumers can also make payment of power bills

through Electronic Clearing System(ECS)/ Credit card/ online E-payment up

to the limit prescribed by the RBI, and the collection of power supply bills

above Rupees One lakhs through RTGS / NEFT at the option of the consumer.


RECS


ESCOMs in their applications have requested the Commission, to also it to

allow to collect the power supply bills through various new modes of digital

payments including by Debit / Credit Cards, BBPS and allow to bear the

charges incurred on such transaction and pass on to the consumer in the

retail supply tariff. The Commission as discussed earlier in this Chapter, in order

to encourage the consumers to opt for digital payments in line with the

direction of the MOP, GoI decides to allow ESCOMs to collect payment of

monthly power supply bill through Electronic clearing system (ECS)/ Debit /

Credit cards / RTGS/ NEFT/ Net Banking through ESCOMs / Bank/ Bangalore

one and Karnataka One websites, on-line E-Payment / Digital mode of

payments in line with the guidelines issued and the payment up to the limit

prescribed by the RBI wherever such facility is provided by the Licensee and

allow to incur and claim the expenditure on such transaction in the ARR as

approved in pre-paras. However, the Commission decides to allow Hukeri

RECS to incur the expenditure on the payment for power supply bills received

through Debit / Credit Cards having demand upto Rs.2000/- only.

4.9 Cross Subsidy Levels for FY19:

The Hon’ble Appellate Tribunal for Electricity (ATE), in its Order dated

8th October, 2014, in Appeal No.42 of 2014, has directed the Commission to

clearly indicate the variation of anticipated category-wise average revenue

realization with respect to overall average cost of supply in order to implement

the requirement of the Tariff Policy that tariffs are within ±20% of the average

cost of supply, in the tariff orders being passed in the future. It has further

directed the Commission to also indicate category-wise cross subsidy with

reference to voltage-wise cost of supply so as to show the cross subsidies

transparently.

In the light of the above directions, the variations of the anticipated category-

wise average realization with respect to the overall average cost of supply

and also with respect to the voltage-wise cost of supply of HRECS and the

cross subsidy thereon, is Indicated in ANNEXURE- III of this Order. It is the


RECS


Commission’s endeavour to reduce the cross subsidies gradually as per the

Tariff policy.

4.10 Effect of Revised Tariff:

As per the KERC (Tariff) Regulations 2000, read with the MYT Regulations 2006,

the Hukeri RECS has to file their applications for ERC/Tariff before 120 days of

the close of each financial year in the control period. The Commission

observes that the ESCOMs including Hukeri RECS have filed their applications

for revision of tariff on 30th November, 2017. As the tariff revision is effective

from 1st April, 2018 onwards, the Hukeri RECS would be recovering revenue as

per the revised tariff for eleven months of the current Financial Year (except in

case where the billing cycle is lesser than a month).

A statement indicating the proposed revenue and approved revenue is

enclosed vide Annexure-III and detailed tariff schedule is enclosed vide

Annexure-IV.

4.11 Summary of the Tariff Order:

The Commission has approved for Hukeri RECS an ARR of Rs.17678.60 lakhs for

FY19, which includes the deficit for FY17 of Rs.2560.68 Lakhs with a net gap in

revenue of Rs.927.50 Lakhs as against HRECS’s proposed ARR of Rs.21228.26

lakhs.

The Commission has allowed recovery of the entire gap in revenue with

additional revenue of Rs.927.50 Lakhs on Tariff Revision as against the

additional revenue of Rs.2316.80 Lakhs proposed by HRECS for FY19.

HRECS in its filing dated 30.11.2017 had proposed an increase of 75 paise per

unit for all categories of consumers resulting in average increase in retail

supply tariff by 12.25%. The Commission has approved an average increase of

33paise per unit. The average increase in retail supply tariff of all the

consumers for FY19 is 5.54%.


RECS


The Commission has allowed recovery of additional revenue, partly by

increase in fixed charges ranging from Rs.5 per KW/HP/KVA to Rs.22 per

KW/HP/KVA.

The Commission has allowed recovery of additional revenue, partly by

increase in the energy charges in the range of 15 paise per unit to 30 paise

per unit.

The increase in the energy charges for domestic category up to 30 units is

Rs.20 paise per unit and 25 paise per unit for the consumption above 30 units

The increase in the LT industries category is 20 paise per unit and for other

categories, the increase is in the range of 15 paise per unit to 30 paise per

unit.

In order to increase the sales under HT industry, HT commercial and HT

Hospital and Educational Institutions category, the increase made in energy

charges is 20 paise per unit.

Time of the day tariff which was made mandatory in the previous Tariff Orders

for installations under HT2 (a), HT2 (b) and HT2(c) with contract demand of

500KVA and above with the inclusion of morning peak period from 06.00 Hrs to

10.00 Hrs is continued in this Order except Railway Traction Installation.

The Commission in order to boost the energy sales and to attract the

consumers to consume power from Hukeri RECS has decided to introduce

Special Incentive Scheme to HT category, as follows:

The Commission has decided to offer Special Incentive of Rs.2/- per

unit as incentive for the energy consumption made during night hours

from 22.00 Hours to 6.00 Hours (Next Day) off-peak period, to those HT

consumer who opt for special incentive scheme.

For the consumption between 10.00Hrs to 18.00Hrs over and above

the base consumption of FY18, a reduction of Rs.1/- per unit is allowed


RECS


as special incentive, to those HT consumer who opt for the special

incentive scheme.

The Commission, has allowed concessional tariff of Rs.5.00 per unit to the

BMRCL.

The Commission, has allowed concessional tariff of Rs.6.00 per unit to the

Railway Traction installations.

The Effluent Treatment Plant and Drainage Water Treatment Plants installed

within the premises of the consumer’s installations by drawing power from the

main meter or through sub-meter shall be billed at the respective tariff

category for which the power supply is availed for the installation.

The Commission by considering the environmental and social benefits in

processing of the Solid Waste has decided to bill the power supply arranged

to Solid Waste Processing Plant under LT/HT Industrial Category.

The Commission has introduced new sub-category of LT-6(c) under LT -6 Tariff

Schedule for the power supply arranged to the Electric Vehicle Charging

Stations, at reduced rates.

Green tariff of additional 50 paise per unit over and above the normal tariff,

which was introduced a few years ago for HT industries and HT commercial

consumers at their option, to promote purchase of renewable energy from

ESCOMs, is continued in this Order.

As in the previous Orders, the Commission has continued to provide a

separate fund for facilitating better Consumer Relations /Consumer

Education Programmes.


RECS


The Commission, as decided in the previous tariff Order, has decided to

continue to impose penalty upto Rs.one lakh per subdivision on Hukeri RECS

if it fail to conduct Consumer Interaction Meetings at least once in three

months and such penalty would be payable by the concerned officers of

the Hukeri RECS.

Order

1. In exercise of the powers conferred on the Commission under Sections 62

and 64 and other provisions of the Electricity Act, 2003, the Commission

hereby determines and notifies the retail supply tariff of Hukeri RECS for FY19

as stated in Chapter-6 of this Order.

2. The tariff determined in this Order shall be applicable to the electricity

consumed from the first meter reading date falling on or after 1st April 2018.

3. This Order is signed dated and issued by the Karnataka Electricity Regulatory

Commission at Bengaluru this day, the 14th May, 2018.

-Sd- -Sd- -Sd-

(M.K.Shankaralinge Gowda) (H.D. Arun Kumar) (D.B. Manival Raju)

Chairman Member Member

chapter 4 - chapter-4.pdfbescom has informed that, it has already mandated all ht consumers to pay...

Documents